1. You signed a contract for a special assignment over the next 5 years. You will be paid $12000 at the end of each year. If your required rate of return is 10%, what is this contract worth in today?
2. You need a loan to purchase new equipment. The loan will be paid off over 5 years with payments made at the end of every quarter. If the stated annual rate is 10% and quarterly payments are 350, what is the loan amount?